Aforeign subsidiary of thun corporation has one asset (inventory) and no liabilities. the functional currency for this subsidiary is the yuan. the inventory was acquired for 100,000 yuan when the exchange rate was $0.16 = 1 yuan. consolidated statements are to be produced, and the current exchange rate is $0.12 = 1 yuan. which of the following statements is true for the consolidated financial statements? a. a remeasurement gain must be reported. b. a positive translation adjustment must be reported. c. a negative translation adjustment must be reported. d. a remeasurement loss must be reported.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it.g